In the run-up to Indiaâ€™s 65th Republic Day, the Voice of Russiaâ€™s correspondent Natalia Benyukh interviewed the Ambassador of India to Russia, P.S. Raghavan, who said that Delhi hoped to soon start working on a Comprehensive Economic Cooperation Agreement between India and the Customs Union of Belarus, Kazakhstan and Russia that would cover trade in goods, services and investments.
You were in charge of economic cooperation at the Indian Foreign Ministry. What are the current trends and priorities in Indo-Russian relations? In your opinion, what steps should be taken by both sides to significantly promote Indo-Russian trade and economic ties?
Bilateral relations between our two countries have been close and friendly over the past many decades and span every field of human endeavour. The challenge for us is to ensure that the economic pillar of our bilateral relations strengthens at the same pace as the other pillars, exploiting the new opportunities constantly being provided by the dynamic developments in our economies and global economic trends.
Our bilateral trade in 2012 reached US $11 billion. Projections in 2013 show a marginally negative trend, primarily due to fall in Russian exports which have fallen globally in 2013; however, economic indicators are positive again for 2014. Investments are witnessing a healthy trend and have a huge prospect for growth between our two countries in areas such as pharmaceuticals, hydrocarbons, engineering, metallurgy, infrastructure, hi-tech, minerals and other sectors. Last year, we established a new Working Group on priority investments which will give impulse to realization of investment opportunities between our two countries.
In terms of further steps, we are engaged in providing further momentum to the existing mechanisms at the level of the two governments (such as Inter-Governmental Commission and Working Groups) and at the level of businesses (such as CEOs Council, Forum on Trade and Investment). We would also like better flow of information about each other's business capabilities, achievements and opportunities. In 2014, we are planning to bring a large India Trade Show exhibition to Moscow. Outreach to regions is another priority for expanding economic ties. We hope to initiate work soon on a Comprehensive Economic Cooperation Agreement between India and the Customs Union of Belarus, Kazakhstan and Russia covering trade in goods, services and investments. Hydrocarbon sector remains one of the areas of priority. We are also examining the feasibility of a proposal for direct surface transportation of hydrocarbons from Russia to India.
We are constantly looking for new trade opportunities. To take the latest example, our companies are exploring the possibility of importing coking coal from Russia through the eastern sea route (Vladivostok to Vishakhapatnam) which might prove commercially more viable then our coal imports from some other countries.
Nuclear energy is one of the trends in the developing Russian-Indian cooperation. However, it's well-known that there was a complicated situation before the launching of the first power unit at the Kudankulam nuclear power plant. What are the prospects for promoting cooperation between Russia and India in the nuclear energy sphere?
We deeply value our bilateral cooperation in the field of nuclear energy. Nuclear energy is an important component of India's energy security strategy. I am pleased that Kudankulam Nuclear Power Plant Unit 1 is already delivering power to our grid and Kudankulam Unit 2 is in the final phase of its construction and will be operationalized this year. Indian and Russian companies are at an advanced stage of negotiations for finalizing arrangements for Kudankulam nuclear power plant units 3 and 4, and I am confident that these contracts would be finalized shortly. We have already designated Haripur in West Bengal as another site to Kudankulam for constructing nuclear power plants in cooperation with Russia. As two countries possessing advanced nuclear technology, we are interested in taking forward scientific and technological cooperation in the peaceful uses of nuclear energy. I believe that cooperation in the area of production of nuclear energy between the two countries will continue to grow.
Military and technical cooperation have dominated bilateral cooperation between Russia and India for decades. Currently, the development of a fifth generation fighter jet is among the key tasks. However, Indian press (Economic Times) reported quoting an Indian Air Force source that India is dissatisfied over how work is going on in the implementation of the project. What can you say about Indo-Russian military and technical cooperation?
In recent years our defence ties have radically transformed from a buyer-seller relationship to one involving joint research, design, development, and production of advanced defence systems. The BrahMos supersonic missile project represents an early illustration of this fundamental shift. We are extending this collaboration as we have found it to be of considerable mutual benefit. The Fifth Generation Fighter Aircraft project and the Multi-role Transport Aircraft project are more recent examples of the transformation that has taken place. Both these projects are proceeding well and we look forward to advancing them into their next stages of development.
Recently we have inducted the aircraft carrier INS Vikramaditya into the Indian Navy which, I am confident will enhance the capabilities and reach of our Navy significantly. Over the last two years, there have been numerous collaboration projects and we have inducted four naval ships, upgraded Mig 29 aircraft and are producing SU-30MKI aircraft under license. Recently, the India-Russia military exercise INDRA-2013 took place at the Mahajan Firing Range in Rajasthan, India. We are also planning to continue joint military and naval exercises later this year. So, I am confident to say that Indo-Russian military and technical cooperation, which is a dynamic long-term partnership, is on the right track and will continue to grow in the coming years.
Russia prefers to supply weapons to India under intergovernmental agreements, while at present, India uses this mechanism with the US but not tenders which often involve manipulation. Why shouldn't India implement this mechanism in military and technical cooperation with Russia?
We already buy defence equipment from Russia under inter-governmental agreements such as the INS Vikramaditya, three frigates or the additional contracts for SU-30MKI aircraft a year back or ongoing FGFA and MTA. All our acquisitions are based on our defence procurement procedures
I understand there is always competition for defence suppliers to the Indian market, but our defence ties with Russia have grown nonetheless. Russian companies have proved competitive and emerged as valued partners in meeting our defence requirements. Foreign arms manufacturers from several other countries have won some of our defense acquisition tenders over the past few decades, but it would be no exaggeration to say that Russia is our most important defence partner and this will remain the case in the foreseeable future.
Some time ago, India confirmed its interest in joining the SCO. Russia supports it. What opportunities would SCO open for India?
SCO is an important regional mechanism for cooperation in the areas of economy, regional security, counter-terrorism, energy, transport connectivity, culture etc. India has been associated with the SCO as an observer since 2005. India is keen to play a larger role in the SCO as a full member, once the organization reaches consensus on its expansion process. Russia has voiced support for India's full membership of the SCO, we really appreciate that.
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Comprehensive Economic Cooperation Agreement between India and the Customs Union of Belarus, Kazakhstan and Russia covering trade in goods, services and investments. Hydrocarbon sector remains one of the areas of priority. We are also examining the feasibility of a proposal for direct surface transportation of hydrocarbons from Russia to India.
We are constantly looking for new trade opportunities. To take the latest example, our companies are exploring the possibility of importing coking coal from Russia through the eastern sea route (Vladivostok to Vishakhapatnam) which might prove commercially more viable then our coal imports from some other countries.

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its good news that India and Russia will work together on hydrocarbons , does anyone knows when this custom union deal would be made ?

India is seen as a favorable nation in Russia, Russia do not want Western influence or rising Chinese influence in its former soviet union countries. With Russian backing India can venture into central Asia and can expand trade activities.

The time line is not mentioned but I think it will be done very soon, other economic activities are happening between India and central Asian countries.

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Central Asian countries do look towards Russia and India in many sectors and you are right India and Russia can work out on many sectors not only in Central Asia but even in Afghanistan.

India is seen as a favorable nation in Russia, Russia do not want Western influence or rising Chinese influence in its former soviet union countries. With Russian backing India can venture into central Asia and can expand trade activities.

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Yes , Russians do see India as a brotherly and friendly country. I am not aware about Chinese and Russian relations on ground.

The opportunities are there for India to grab and develop rapidly.

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India do have to secure energy sources and its really nice to hear that Russians are willing to share their hydrocarbons reserves with India and expanding economical and commercial partnership .

The other factor that is driving nations like Russia, ASEAN and other regions that are favoring Indian involvement is that , until now USA is the sole power , nations are worried about chinese rise and the consequences that occur. Nations want to counter the influence of chinese rise, reason why India is getting opportunities to venture all over Asia.

The other factor that is driving nations like Russia, ASEAN and other regions that are favoring Indian involvement is that , until now USA is the sole power , nations are worried about chinese rise and the consequences that occur. Nations want to counter the influence of chinese rise, reason why India is getting opportunities to venture all over Asia.

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With ASEAN countries , if i am not wrong , its with South China sea dispute ? Isn't it .

With ASEAN countries , if i am not wrong , its with South China sea dispute ? Isn't it .

Yes with the air defense zone , many ASEAN countries are quite disturbed . President Putin is a good statesman and have made Russia to rise

Central Asian and South east Asian countries do prefer India more than China . Russia and USA know that relations with India are important .

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SCS dispute only made clear the chinese hegmonic attitude, Western propaganda and all only added to that.

These nations are around China are under USA's umbrella of protection(most of them except vietnam), What USA is doing now is not confronting China directly but helping other nations around china to form alliance and confront China.

This is what West wants ,.i.e stopping the rise of Asia.

As far as India is concerned, India need to grab the opportunities and turn them to its advantage, be it trade, military tech or strategic in roads. India will grow stronger by making use of this opportunity.

Only way china cannot bully India is by " making sure that Indo - China confrontation is not good for both the countries".

SCS dispute only made clear the chinese hegmonic attitude, Western propaganda and all only added to that.

These nations are around China are under USA's umbrella of protection(most of them except vietnam), What USA is doing now is not confronting China directly but helping other nations around china to form alliance and confront China.

This is what West wants ,.i.e stopping the rise of Asia.

As far as India is concerned, India need to grab the opportunities and turn them to its advantage, be it trade, military tech or strategic in roads. India will grow stronger by making use of this opportunity.

Only way china cannot bully India is by " making sure that Indo - China confrontation is not good for both the countries".

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I think up to a large extent its the Asian countries to be blamed for the current stand off and blaming here West or any other power would be unfair. We are already in that era where many regional blocks are made for trade and military alliance. India do have good foreign policy because its a democracy which certain countries lack and that's why intentions of those countries are clearly visible.

I think up to a large extent its the Asian countries to be blamed for the current stand off and blaming here West or any other power would be unfair. We are already in that era where many regional blocks are made for trade and military alliance. India do have good foreign policy because its a democracy which certain countries lack and that's why intentions of those countries are clearly visible.

Have there been any real change from Chinese sides towards India ?

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It is not blaming the west for what is happening in Asia.

Japan and S.Korea are USA's allies and today they are coming to India for support against Chinese hegemony, one of the reason is USA do not want to confront its biggest trading partner.

Regarding chinese attitude towards India, India is not dependent on China, trade activity is there but it can be compensated quickly in case of confrontation. so nothing to worry about chinese attitude towards India.

Japan and S.Korea are USA's allies and today they are coming to India for support against Chinese hegemony, one of the reason is USA do not want to confront its biggest trading partner.

Regarding chinese attitude towards India, India is not dependent on China, trade activity is there but it can be compensated quickly in case of confrontation. so nothing to worry about chinese attitude towards India.

India only needs to beef up its military muscle and economy.

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Japan and South Korea relations with India has in fact changed the equation on the ground and have even changed the regional politics which in real is good not only for the region but for development, peace and co operation among regional countries.

Yes , India has to continue with the economical development and modernize the military . 2014 is really like turning point for the Indian nation in all aspects internal, regional and international.

Japan and South Korea relations with India has in fact changed the equation on the ground and have even changed the regional politics which in real is good not only for the region but for development, peace and co operation among regional countries.

Yes , India has to continue with the economical development and modernize the military . 2014 is really like turning point for the Indian nation in all aspects internal, regional and international.

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Yes and true!!!

But India do have its own strengths and capabilities which will make it a strong power in this decade. South Korea and Japan bilateral relationship will only aid to the strengths that India already posses.

In the near future it will be India that nations around the globe will talk about, when it comes to economy or Power(military) in a good way

But India do have its own strengths and capabilities which will make it a strong power in this decade. South Korea and Japan bilateral relationship will only aid to the strengths that India already posses.

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India do have the potential to expand itself in all the sectors because India is having educated youth, manpower, technology and even the resources. What India needs is a huge industrial revolution and opening up of manufacturing units in all the sectors and start export lines for Africa, Asian, Latin American and European countries of Indian made items. But these factories should be far from cities so that the rural populations can benefit and get jobs .

India do have the potential to expand itself in all the sectors because India is having educated youth, manpower, technology and even the resources. What India needs is a huge industrial revolution and opening up of manufacturing units in all the sectors and start export lines for Africa, Asian, Latin American and European countries of Indian made items. But these factories should be far from cities so that the rural populations can benefit and get jobs .